Thailand’s Ministry of Finance has disclosed plans for the commencement of the Digital Wallet Scheme registration process through smartphones from August 1 to September 15, 2024, and subsequently through general applications from September 16 to October 15, 2024.
The Finance Minister of Thailand, Pichai Chunhavajira, emphasized that the 500 billion baht “digital wallet” stimulus initiative is imperative to invigorate the economy, which has been hindered by low incomes and high household debts. The registration for participating stores will commence on October 2, with the official launch slated for the final quarter of this year.
More than two million shops are anticipated to partake in the scheme, according to government projections. The Deputy Minister of Finance, Julapan Amornvivat, specified that face-to-face transactions between buyers and sellers are mandatory for individual buyers and small shop owners, while shop-to-shop transactions are permissible both within and outside the designated areas.
Furthermore, electronic applications, mobile phones, cash cards, petrol purchases, and gold acquisitions are restricted from the scheme, as mentioned by the Deputy Minister.
There are lists of conditions and status that applicants must meet to receive the handout. Notably, the conditions include 1) must be a Thai nationality and above 16 years of age, 2) personal income not exceeding 850,000 baht in CY2023 and 3) less than 500,000 baht of saving in commercial banks.
Pichai highlighted the anticipated low economic growth of 2.4% for the year due to underlying structural challenges, which are being addressed alongside stimulus efforts to kickstart the economy, the second-largest in Southeast Asia.
Although the scheme serves as the centerpiece policy of the ruling Pheu Thai party and was instrumental in securing votes, issues relating to funding mechanisms have led to delays in its implementation. Critics, including former central bankers, have expressed concerns about the fiscal implications and urged for a more targeted approach towards vulnerable sectors rather than a broad handout for short-term relief.
Despite these reservations, the government has reaffirmed its commitment to adhering to fiscal discipline. The initiative involves transferring 10,000 baht ($277) credits to 50 million recipients via a smartphone application, with the funds intended to be spent locally within a six-month period.
